After giving an early signal to strengthen earlier in the week, the US dollar showed a significant jump in yesterday's New York session which was also followed by the release of encouraging survey data for the manufacturing sector in the United States (US) yesterday.
The Pound is among those clearly affected by the strengthening US dollar while concerns over the resurgent Brexit uncertainty continue to overshadow the British currency.
Thus, investors have seen a significant decline in the price on the chart of the GBP/USD pair yesterday with a daily decline of around 150 pips has been recorded.
The price movement that remains below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame still gives an indication for a bearish movement for the price as well as the price recorded the latest low for this week.
The decline has returned to the RBS (resistance become support) zone of 1.25000 as expected by market analysts, and until the end of the New York session and the continuation of the Asian session this morning (Thursday), prices are still hovering slowly in that zone.
With the bearish trend pattern becoming clearer, the lower decline is expected to head to the 1.24000 level towards the weekend trade.
In fact, if the lower decline continues, the price is seen to reach the zone around 1.23000.
On the other hand if the price manages to recover making a rebound, rising again above the 1.25000 zone will push the price to test the initial resistance at 1.26000.
Passing the MA50 barrier will signal for the price to resume the bullish trend as in previous weeks.
And a continued higher rise will target the 1.27000 high for the price to test the resistance zone.
